tax-665 Estate & Gift
TAX 665 Final Project Part I Milestone Three Guidelines and Rubric
How might charitable giving impact the income, gift, or estate tax outcome for your client? Is there an optimal strategy? Recommend a charitable donation for
income, gift, or estate tax planning purposes. Which deduction (income, gift, or estate) do you recommend, and why? How does life insurance impact your estate
planning strategy for the client? Consider who must pay the premiums and where the cash will come from to pay premiums. Recommend an ethical compliance
strategy based on the client’s comments about a valuation discount on the family limited partnership that is consistent with Internal Revenue Service (IRS)
Circular 230 and the American Institute of Certified Public Accountants (AICPA) Code of Conduct. Also submit a table summarizing the estate, gift, and income tax
consequences of your overall proposed estate plan over the next 24 months and how much of your client’s cash the strategy will consume.
Specifically, the following critical elements must be addressed:
I. Life Insurance, Annuity, and Charitable Giving Strategies
A. Evaluate life insurance products, annuities, and charitable giving for possible estate tax advantages in the taxable estate or in the children’s
estate, while finding use of the cash flow from the sale and the real estate business. Recommend a charitable donation for income, gift, or estate
tax planning purposes.
B. Recommend an ethical compliance strategy based on the client’s comments about a valuation discount on the family limited partnership that is
consistent with Internal Revenue Service (IRS) Circular 230 and the American Institute of Certified Public Accountants (AICPA) Code of Conduct.
Consider the client’s cash constraints, economic impact over time, IRS Circular 230, and the AICPA Code of Conduct.
C. Develop an additional ethical compliance strategy that addresses the client’s estate tax and the interest and penalty that will accrue if he does
not make timely payments of tax. Acknowledge appropriate tax case law and statutes. Consider quantifying penalties and interest.
II. Tables and Calculations: Excel Documentation
A. Analyze the personal income tax consequences and value over the next 24 months as a result of the overall proposed tax strategy. Consider
justifying the strategy in comparison to an alternative transaction.
Rubric
Guidelines for Submission: Your paper must be submitted as a 2–3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-
inch margins, and at least three sources cited in APA format. Include an Excel sheet explaining the income tax consequences of your overall proposed estate plan.
Critical Elements Proficient (100%) Needs Improvement (70%) Not Evident (0%) Value
Life: Insurance Evaluates life insurance products,
annuities, and charitable giving for
possible estate tax advantages in
the taxable estate or in the
children’s estate, and recommends
a charitable donation, while finding
use of the cash flow from the sale
and real estate business
Evaluates life insurance products,
annuities, and charitable giving for
possible estate tax advantages, but
details either do not address the
use of cash flow from the sale and
real estate business, or are
inaccurate and do not recommend
a charitable donation
Does not evaluate life insurance
products, annuities, and charitable
giving
22
Life: Ethical Recommends an ethical compliance
strategy that is consistent with IRS
Circular 230 and the AICPA Code of
Conduct
Recommends an ethical compliance
strategy, but details either lack
consistency with IRS Circular 230
and the AICPA Code of Conduct, or
are irrelevant
Does not recommend an ethical
compliance strategy
22
Life: Interest Develops an ethical compliance
strategy for addressing the client’s
estate tax and interest and for
avoiding penalties using
appropriate tax case law and
statutes as justification
Develops an ethical compliance
strategy, but details lack either
relevance or appropriate tax case
law and statutes
Does not include an ethical
compliance strategy
22
Tables: Personal Analyzes the personal income tax
consequences and costs as a result
of the strategy
Analyzes the personal income tax
consequences and costs as a result
of the strategy, but details are
irrelevant or cursory
Does not analyze the income tax
consequences and costs as a result
of the strategy
22
Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of ideas
12
Total 100%